ok so im looking to buy my first multifamily rental property in the Worcester area, im organizing my marketing campaign and am just about ready to unleash it.. Assuming i get call backs i will then set up appointments to meet with the home owners.. so after the appointment i will go home crunch the numbers and make an offer.. assuming the owner agrees on the phone what will be the next step..I will not be offering cash and my options are FHA loan, wholesale, owner finance, and subject to... my question is what form do i send them for which ones???? What paperwork do i bring with me if i feel i could make an offer while im there??what paperwork do i need to offer subject to??? What paperwork do i need to wholesale?? what paperwork do i need for FHA??
I want to be fully prepared and have every tool on me to satisfy the buyers needs and get a great deal...
OHH yea i forgot to ask... Is this how the process normally goes.. did i forget steps or get steps in the wrong order??
Hello @Rick Patriarca
When I go physically meet a client I have several forms with me.
This is the (assignable) contract to purchase. The contract I use is one page long. It's simple and easy to read. I use this form to lock the property up under contract at a cash price low enough to give you about $10,000 of meat on the bone (more if possible) and the end buyer lots of meat on the bone after that.
This is the contract that comes with me to the Title Attorney's office. This is what the end buyer signs to take my position in the contract. Yep, you guessed it, it's one page long.
Flex Option Contract
When you've been at this business a while sometimes you'll get calls from wholesalers telling you that they have a property under contract and it's a good deal--but they're having difficulty moving it. I keep these on hand for just such a call. A flex option, in this case, would give me the option (but not the obligation) to purchase the wholesaler's property. I'd mark it up slightly ($2,000-$3,000) and shop it to my cash buyers under two conditions (1) I know the wholesaler well enough to trust that everything is on the up-and-up (2) he provides me with a copy of the original contract and supporting documentation such as a scope of work, etc. This form gives me equitable interest in the property, so I'm not acting like a Realtor without a license. This contract is also 1 page.
Subject-To Hazards Disclosure Form
This is to let the seller know in writing of the risks associated with selling their property subject-to the original financing. That is, to let them know that the original lending institution has the right (but not the obligation) to foreclose on a property under such conditions. Yes, it's one page also.
For those times when one page contract just won't do!
That's pretty much it. You probably want to also bring a yellow legal pad to take notes with, and a smart phone to take pictures.
@jeff G. you are the man.. thanks you so much..
yes, thank you Jeff! And thanks for asking the great newbie question. I would have myself had you not already
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